April 2017
www.africanbusinessreview.co.za
Q& A WITH DPO & PAYGATE
T H E
R I S E
CONSTANCE HOTELS THE TECHNOLOGY BEHIND LUXURY
STUDENT HOUSING WITH JLL
O F
WORLD BANK: EASE OF DOING BUSINESS
E G Y T R A N S
EDITOR’S COMMENT
OPENING DOORS WELCOME TO OUR April issue. “Working for a world free of poverty” – the World Bank’s motto is an ambitious one, especially when it comes applied to the issues of a rapidly growing African population. Just how tight is the organisations grasp on contemporary Africa? In this issue, focus on current World Bank projects. One feature gives an insight into the Bank’s Doing Business project, and reveals the top 10 easiest places to do business in sub-Saharan Africa. We also report on the Bank’s new publication launch. African Business Review was lucky enough to view, and succintly summarise, the Africa’s Cities: Opening Doors to the World launch. Another new, exciting African venture is the DPOPayGate partnership. We chat to the CEO of DPO (east Africa’s largest online payments processor) about its acquisition of its South African counterpart, PayGate. From payments to housing, we ask the question: “Should you invest in African student housing? Read our special report to discover the answer… Make sure to check out our exclusive company reports too. This month, we interview Constance Hotels and Resorts, EGYTRANS, Microcred and Newmont Mining. Happy reading, and as always, feedback is welcome.
Enjoy the issue! Wedaeli Chibelushi Editor wedaeli.chibelushi@bizclikmedia.com
F E AT U R E S
TECHNOLOGY
PAYING IT FORWARD
06
PROFILE
Should you invest in student housing?
20
12 LIST
Easiest countries to do business in
SUB-SAHARAN AFRICA INSIGHT
How African cities can welcome the world 4
April 2017
30
C O M PA N Y P R O F I L ES
38
EGYTRANS Supply Chain
50
Constance Hotels and Resorts
78
Newmont Ghana Gold Limited
Technology
Mining
64
Microcred Technology
72
Ghana Chamber of Mines Mining
5
Paying it FORWARD African Business Review speaks to Eran Feinstein, CEO of DPO, about the firm’s recent acquisition of South African brand PayGate Wr it te n by: W E DA E LI CH I B E LU S H I
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April 2017
TECHNOLOGY IN SEPTEMBER LAST year, the DPO (Direct Pay Online) Group, east Africa’s largest online payments processor, announced a significant majority stake in PayGate, South Africa’s largest online payment processor. The two firms plan to create a pan-African presence. We spoke to Eran Feinstein, CEO of DPO, to learn more about the merger. Can you tell me a bit about your background and how you came to hold your current position at DPO? I grew up in Israel. I went to university; my first degree was in Computer Science, my second degree was a Masters in Business Administration. From a very young age, I was involved in technology projects, such as programming. I used to be the GM of an IT company doing ecommerce, then I left that job and received a phone call. Someone invited me to come over to Nairobi to do consulting work for an airline. I came here at the beginning of 2006, and this is where I started this long process with Africa. Back then I did that project with an airline, ecommerce, and during that project I was asked also to provide online payment 7
TECHNOLOGY services. I realised there was nothing in this region, so I came up with the solution to do payments. This is how Direct Pay Online started. It was by chance, it was not planned. Can you expand on the reasons why you chose to set up DPO in Africa? The lack of technology. I realised that there was a gap, there was a real need for good technology. I realised that the market was ready in terms of the people that worked here who were looking for solutions, and I found very nice people, a very nice market - it gave me a very pleasant welcome. The market asked for such providers to start providing these services. They gave me a good opportunity. The infrastructure was reasonable, not good, but reasonable. How did the DPO-Paygate partnership come to be? Two years ago, we realised that we needed to expand more rapidly. We had early presence
“Merchants all across the region will be able to use the same solution, it doesn’t matter where they are, to accept payments” – ERAN FEINSTEIN, CEO of DPO 8
April 2017
PAY I N G I T F O R W A R D
in Uganda, Rwanda, Kenya and Zambia…we wanted to grow faster. We raised some funds from a private equity fund in London and part of our expansion was to find other companies we could acquire. We found PayGate as a leading payment gateway in South Africa. Just like that, we approached them, we presented them with the vision of a big group all across Africa, and they bought the idea. We moved on and we acquired 100 percent of PayGate, and now they’re part of the group. How will the partnership affect existing DPO clients? We’re importing and exporting solutions PayGate develop in South Africa to the rest of the continent, so there would be more options in our payments service which PayGate developed. Also, it will create more opportunities for our clients which are out of South Africa to do business with clients which worked within South Africa. We’ve always connected our clients between themselves. We give more opportunities to clients both within South Africa and out of South Africa, where the group is now heading all the solutions across the board. What does this partnership mean for online payments across Africa? Africa, which is a huge continent, is divided into many, many regions and of course many countries. For each part of Africa there is a 9
TECHNOLOGY different solution. What we’re trying to do, we’re trying to provide across all regions the same solution. What I’m saying is, take the solution that we implemented in East Africa and South Africa and implement it in more than 16 countries across the region. That means that merchants all across the region will be able to use the same solution, it doesn’t matter where they are, to accept payments. Which countries are we talking about here? When I’m saying across Africa, we work mainly across the sub-Saharan region. Until the end of 2017, we’re looking at 16 countries. Then in 2018 we’re looking at an additional 10 countries. Most of the - let me call them ‘developed’ - countries within the sub-Saharan region will be covered by our solution. We’re already moving very fast. Since we started with PayGate, we’ve already moved into four or five countries, so it’s moving quite fast. Will the merger create opportunities for jobs? Oh yeah, of course. We’re recruiting all across the region. As I mentioned before, we’re 10
April 2017
“Since we started with PayGate, we’ve already moved into say four or five countries, so it’s moving quite fast” – E RAN FEINSTEIN CEO of DPO
opening branches in 16 countries, so the team is growing quite rapidly, all across the continent. How will the merger maintain security and fraud prevention? In our group we have new solutions, we develop our own solution. We keep developing it for 10 years… they’re our own solutions, the technology, the knowledge, the team memberrs. One important factor is that due to this merger, we’re now
creating one broad merger for the sub-Saharan merger, that will take care of fraud prevention and risk management all across the region. Where do you see the partnership in five years’ time? In five years’ time… as I mentioned before, we’re looking at the subSaharan region where in most of the countries there is a leading payments solution which connected merchants to their consumers, Our solution within
five years will be able to process any form of payment: credit card mobile money which is quite huge in many parts of Africa, online bank transfers... for security, we have a mobile app. So, we really are trying to achieve this goal where in all of these countries there will be one leading solution, and I hope we will be the one.
11
Should you invest in
student housing? Written by: WEDAELI CHIBELUSHI
PROFILE
According to a recent report by property company JLL, the demand for purpose-built student accommodation in sub-Saharan Africa is rocketing. Should investors take note? African Business Review investigates ACCORDING TO REAL estate firm JLL, “demand for new purposebuilt student accommodation across sub-Saharan Africa is set to exceed 500,000 beds over the next five years”. It looks like supplying this accommodation will largely be the remit of the private sector - it’s no secret that there are public sector budget constraints across Africa. Does this opportunity for the private sector make African student housing an attractive investment category (like it is in the UK and US)? The private student housing sector was born in the US, in the ‘90s. Many big developers and operators put their student housing portfolios into REITs (Real Estate Investment Trusts) - companies that own or finance incomeproducing real estate. Alongside REITS, numerous investment vehicles were used to support
student housing developments in the US. Accommodation fever soon spread across the Atlantic. Private UK companies began investing in city centre, purpose-built student housing in order to cater for a growing student’s population. According to JLL, there were £5.7 billion worth of UK private student housing transactions. In comparison, Africa’s student housing market is “embryonic”. Philip Hillman, Head of Student Housing for EMEA JLL tells us about the nascent industry: “There are very few operators that have more than 1,000 beds.” Hillman’s claims are attested by last year’s protests at the University of Cape Town. A group of students (known as the Rhodes Must Fall movement) got global attention after protesting against a number of university shortcomings, one being a insufficient accommodation. In July 2016, there was an estimated 13
PROFILE 216,000 bed shortages at South African universities. In wider subSaharan Africa, student housing is also a critically overlooked niche. In the last decade, higher education enrolment in Africa has more than doubled, numbers have jumped from 2.3 million to 5.2 million. The property market has in no way kept up with this growth. Rather, many students stay in non-specific, hostel-like accommodation. In the study ‘Investment Theme: Access to Housing’, Maiwase Chilongo predicts
‘The Kenyan government is conducting a PPP feasibility study for a multi-million dollar student hostel development for five public universities. The project is expected to provide over 50,000 new student beds’ 14
April 2017
that Africa’s young demographic will “drive the demand for housing even higher and create the need for subsets such as student housing”. So, why does Africa have a supply and demand gap? Firstly, few property managers on the continent specialise in the student housing market segment. According to Housing Finance Africa, “this is a key challenge in making this market segment work”. On the other hand, property developers for non-purpose built student housing (e.g. hostels,
SHOULD YOU INVEST IN STUDENT HOUSING?
houses) try to put people off investing in order to protect their position in the market. “They say, ‘look, there’s no students sleeping on the streets, so there isn’t really a shortage’”, Hillman explains. “They find somewhere to lay their heads, but it doesn’t necessarily mean its somewhere they want to be. The question is, what is appropriate?” Despite this attitude, Hillman believes that there is an opportunity for small scale developers to bridge the student housing supply and demand gap. He explains: “The most likely route
is small scale developers taking a commercial view on occupational demand. We would anticipate developers, who become operators, who gradually build a portfolio. Then, in time we’ll see a consolidation of those parties. They get aggregated and swallowed up and become some of the big investment vehicles that we see elsewhere in other continents”. Hillman also points out that affordability is a key factor. Many Africans struggle to pay for accommodation fees due to relatively
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PROFILE high poverty levels and poor access to affordable credit. JLL estimate that by 2020, only 15 percent of the newly enrolled African student population will be able to afford purpose-built student accommodation. Unlike in the UK and US, there are few government loans available to cover housing costs. JLL found that African governments have kept their education budget allocations at around 4 percent over the past decade (relative to GDP). This lags behind the global average. However, this situation may be improving. The National Student Financial Aid Scheme (NSFAS), is a state-run student loan that covers private accommodation, among other costs. In January, NSFAS announced that the Minister of Higher Education and Training has made available funds of approximately 14.6 billion rand for 2016/7. Furthermore, large commercial banks such as Standard Bank, First National Bank, ABSA and Nedbank have partnered with developers and are providing loans in order to address the critical student housing shortage in South Africa. Positive change is being made, but more can be done. There are ways of supplying student houses that 16
April 2017
have barely been explored yet, such as building student accommodation offsite and transporting it in modular methods. This process would overcome local labour and resource shortages. In the UK’s early private student housing boom, the vast majority of accommodation was not built, but instead rebuilt from cheap office space. There is potential for the same thing to happen in Africa. In Nairobi, several corporations are moving out of the CBD and into the outer city areas like Upper Hill and Westlands, thus leaving office block towers vacant. “The whole character of the CBD is changing around the education sector,” Hillman says. There’s 18 university establishments in Nairobi and a young population, which is why there’s a strong case for the recently available Ecobank Towers to be used as private student housing. Similarly, the Braamfontein district in central Johannesburg is transitioning into a student area. Braamfontein is home to the University of the Witwatersrand, and various other educational institutions. International Housing Solutions, a global equity investor, has funded the building of 1,900 private student accommodation
SHOULD YOU INVEST IN STUDENT HOUSING?
TOP 15 PRIVATE STUDENT ACCOMMODATION PROVIDERS IN AFRICA 01. Africanicon 02. Shelter Afrique 03. South Point 04. Africa Integras 05. Stag African 06. Respublica 07. CampusKey 08. Real People Housing Holdings 09. Octodec Investments
10. Varsity Lodges 11. Elgado Wordwide 12. Crowie Projects 13. International Housing Solutions 14. Indluplace 15. Yandy Property Group Source: JLL (2016): Student housing a new asset class in SSA August
17
PROFILE
TOP 10 MOST DESIRABLE UNIVERSITY CITIES (by size of student population and concentration of top ranked universities by country) 1. 2. 3. 4. 5. 6.
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Cairo, Egypt Addis Ababa, Ethiopia Accra, Ghana Kampala, Uganda Nairobi, Kenya Pretoria, South Africa
April 2017
7. Bloemfontein, South Africa 8. Cape Town, South Africa 9. Johannesburg, South Africa 10. Durban, South Africa Source: JLL (2016): Student housing a new asset class in SSA August
SHOULD YOU INVEST IN STUDENT HOUSING?
options in that area. Providers Southpoint and Respublica also have student housing in Braamfontein. How would one go about investing in such private student housing? Investors wishing to enter the subSaharan student housing market have a greater variety of vehicles and structures at their disposal than ever before. Firstly, investors can enter the market indirectly via
is conducting a PPP feasibility study for a multi-million dollar student hostels development for five public universities. The project is expected to provide over 50,000 new student beds. “What I think is particularly attracting investors to student housing globally, is that by nature it’s an alternative investment asset class. And by that, I mean its operational property: you have to get in there and
‘Large commercial banks such as Standard Bank, First National Bank, ABSA and Nedbank have partnered with developers and are providing loans in order to address the critical student housing shortage in South Africa’ REITs. An example of this is South African Arrowhead Properties Limited which purchased 51 percent of the aforementioned Respublica. Alternatively, investors can take direct entry by entering a public private partnership (PPP). Universities in Kenya and Ghana have recently concluded large PPPs agreements for the provision of student housing. Additionally, the Kenyan government
get your hands dirty with operating the accommodation. You don’t just sit back,” Hillman concludes. “The real attraction is that [student housing’s] success in the sector is not going to be determined by the boom and bust of the continuous cycle that we see. And as long as families aspire to be as well educated as they can possibly afford, you’re going to see ongoing demand for the sector.”
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Easiest countries to do business in
SUB-SAHARAN AFRICA The World Bank’s Doing Business project aims to provide objective measures of business regulations across the world
TOP 10
We explored the institution’s sub-Saharan
starting and operating a local firm.
data and found out which countries
The rankings were calculated by sorting
are most conducive to starting a local
aggregate scores on 10 topics, giving
business. What does the data mean? A
equal weight to each topic. The indicators
high ease of doing business rank means
refer to a specific type of business,
a country’s regulatory environment is
generally a local limited liability company
more encouraging when it comes to
operating in the largest business city.
Wr it ten by: W EDA ELI C H I BELUSH I
21
TOP 10
10 NAMIBIA Starting a Business: 38 Dealing with Construction Permits: 6 Getting Electricity: 10 Registering Property: 40 Getting Credit: 9 Protecting Minority Investors: 4
09 GHANA
Starting a Business: 17 Dealing with Construction Permits: 15 Getting Electricity: 9 Registering Property: 5 Getting Credit: 4 Protecting Minority Investors: 7 Paying Taxes: 16 Trading across Borders: 29 Enforcing Contracts: 17 Resolving Insolvency: 35 Ease of Doing Business Rank: 108
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April 2017
Paying Taxes: 6 Trading across Borders: 17 Enforcing Contracts: 11 Resolving Insolvency: 12 Ease of Doing Business Rank: 108
EASIEST COUNTRIES TO DO BUSINESS
08 LESOTHO Starting a Business: 20 Dealing with Construction Permits: 37 Getting Electricity: 21 Registering Property: 14 Getting Credit: 12 Protecting Minority Investors: 15 Paying Taxes: 17 Trading across Borders: 2 Enforcing Contracts: 9 Resolving Insolvency: 24 Ease of Doing Business Rank: 100
07 ZAMBIA
Starting a Business: 15 Dealing with Construction Permits: 8 Getting Electricity: 23 Registering Property: 28 Getting Credit: 2 Protecting Minority Investors: 10 Paying Taxes: 4 Trading across Borders: 31 Enforcing Contracts: 22 Resolving Insolvency: 8 Ease of Doing Business Rank: 98
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TOP 10
06 SEYCHELLES Starting a Business: 26 Dealing with Construction Permits: 27 Getting Electricity: 15 Registering Property: 2 Getting Credit: 23 Protecting Minority Investors: 13 Paying Taxes: 3 Trading across Borders: 5 Enforcing Contracts: 20 Resolving Insolvency: 3 Ease of Doing Business Rank: 93
05 KENYA
Starting a Business: 19 Dealing with Construction Permits: 29 Getting Electricity: 3 Registering Property: 19 Getting Credit: 3 Protecting Minority Investors: 8
24
April 2017
Paying Taxes: 14 Trading across Borders: 9 Enforcing Contracts: 8 Resolving Insolvency: 10 Ease of Doing Business Rank: 92
EASIEST COUNTRIES TO DO BUSINESS
04 BOTSWANA Starting a Business: 32 Dealing with Construction Permits: 3 Getting Electricity: 11 Registering Property: 3 Getting Credit: 11 Protecting Minority Investors: 5 Paying Taxes: 6 Trading across Borders: 3 Enforcing Contracts: 21 Resolving Insolvency: 4 Ease of Doing Business Rank: 71
03 SOUTH AFRICA Starting a Business: 22 Dealing with Construction Permits: 11 Getting Electricity: 5 Registering Property: 12 Getting Credit: 10 Protecting Minority Investors: 1
Paying Taxes: 2 Trading across Borders: 25 Enforcing Contracts: 16 Resolving Insolvency: 2 Ease of Doing Business Rank: 74 25
TOP 10
02 RWANDA
Starting a Business: 8 Dealing with Construction Permits: 32 Getting Electricity: 7 Registering Property: 1 Getting Credit: 1 Protecting Minority Investors: 12 Paying Taxes: 5 Trading across Borders: 6 Enforcing Contracts: 10 Resolving Insolvency: 7 Ease of Doing Business Rank: 56
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April 2017
EASIEST COUNTRIES TO DO BUSINESS
01 MAURITIUS Starting a Business: 4 Dealing with Construction Permits: 2 Getting Electricity: 4 Registering Property: 10 Getting Credit: 7 Protecting Minority Investors: 2 Paying Taxes: 1 Trading across Borders: 4 Enforcing Contracts: 1 Resolving Insolvency: 1 Ease of Doing Business Rank: 49 27
TOP 10
What the ‘starting a business’ indicators measure: Procedures to legally start and operate a company (NUMBER)
• Preregistration (for example, name verification or reservation, notarization) • Registration in the economy’s largest business city • Post-registration (for example, social security registration, company seal) • Obtaining approval from spouse to start a business, to leave the home to register the company or open a bank account. • Obtaining any gender specific document for company registration and operation, national identification card or opening a bank account. Time required to complete each procedure (CALENDAR DAYS)
• Does not include time spent gathering information • Each procedure starts on a separate day (2 procedures cannot start on the same day). • Procedures that can be fully completed online are recorded as ½ day. • Procedure completed once final document is received • No prior contact with officials Cost required to complete each procedure (% OF INCOME PER CAPITA)
• Official costs only, no bribes • No professional fees unless services required by law Paid-in minimum capital (% OF INCOME PER CAPITA)
• Deposited in a bank or with a notary before registration (or within 3 months)
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INSIGHT
How African cities can
welcome the world
Africa’s cities are growing rapidly. How can they use this growth to become competitive, international cities? We find answers at the launch of the new World Bank report Wr it te n by: W EDA ELI CH I BELUSH I
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INSIGHT AFRICAN BUSINESS REVIEW was invited to watch the launch of a new World Bank report. The World Bank’s new Africa’s Cities: Opening Doors to the World report “looks at how countries can tap into the potential of their cities’ population growth, and the critical steps needed to accelerate economic growth, add jobs, and improve city competitiveness.” Research into urban development is something ABR can get on board with, especially since Africa’s
urban population will double over the next 25 years, reaching 1 billion people by 2040. The launch had a video conference format. A room of World Bank Africa staff introduced Africa’s Cities and its main tenets. Speakers were World Bank Vice President for Africa, Makhtar Diop; Senior Director for Social, Urban, Rural, and Resilience Global Practice, Ede Ijjasz-Vasquez; Urban Director, Sameh Wahba; Lead Economist for Africa, Punam ChuhanPole; and Lead Urban Economist and report author, Somik Lall. On separate channels, journalists
‘Cities are the place where innovation happens, where productivity is higher’
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April 2017
AFRICAN CITIES: WELCOMING THE WORLD
and officials from various African cities such as Khartoum, Dar es Salaam, Nairobi, Lilongwe and Lusaka listened in. Mahtar Diop established the purpose of the report: “How can we best prepare for the unprecedented rise of people moving into cities and towns to pursue their hopes and dreams?” According to Diop, African cities need to be at the forefront of World Bank’s efforts in order for the organisation to fuel create diversification. “Cities are the 33
INSIGHT
34
April 2017
AFRICAN CITIES: WELCOMING THE WORLD
place where innovation happens, where productivity is higher,” he stated. He also assured that the report’s action plan focuses on urban issues, but does not neglect agricultural productivity. Diop highlighted specific economic issues within African cities. For instance, the report found that congestion costs in Africa are among the highest in the world. This makes city firms less competitive. Ede Ijjasz-Vasquez, Senior Director for Social, Urban, Rural, and Resilience Global Practice followed. Ijjasz-Vasquez asserted that there are three major problems with
VIDEO: Africa’s Cities: Opening Doors to the World
African cities. They’re crowded, disconnected and costly. Statistics and facts from the report support his statement. On crowding: 28 percent of Dar es Salaam residents live at least three to a room. In Lagos, two thirds of inhabitants live in slum like conditions. Ijjasz-Vasquez said that the need for housing investment in urban areas is vital. “From 2001 to 2011, low income African countries invested 5 percent in housing,” he said. African Cities found that equivalent cities (in terms of income) globally have much better statistics. The report also found that cities in Africa are 20 percent more fragmented than cities in Asia and Latin America. “There’s a gap between housing and jobs,” he explains, using Nairobi as an example. Because many residents have to walk over an hour to find jobs, they ultimately have fewer job opportunities. So, along with housing investment, African cities are in dire need of infrastructure funding. Finally, Ijjasz-Vasquez addressed the last issue: cost. City residents pay 35 percent more for food than in low income countries elsewhere, the report found. Also, because African cities are so expensive, 35
INSIGHT firms need to pay higher wages and therefore become less competitive. Ijjasz-Vasquez also noted that African cities shouldn’t be ‘local’, that is insular, near-protectionist. Instead, they should connect with international markets. Although Africa Cities poses many challenges, Ijjasz-Vasquez assured listeners that it’s not all bad. He commended select countries for recent efforts to improve land administration. For instance, Senegal
‘Urban and rural investment - it’s not mutually exclusive’
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April 2017
has passed a new Land Tenure Act, under which people with temporary occupancy permits in urban areas can convert permits into permanent title deeds for free. Kenya, Lesotho, and Tanzania are using bulk surveying and land use planning approaches to regularise tenure in slums. From there, the World Bank team opened the conversation up to the floor. “Why can’t we improve rural areas across Africa, in order to prevent mass exodus?” a journalist from Lesotho asked. “It’s not either or,” Ijjasz-Vasquez responded, “It’s and”. Both he and report author Somik Lall assured that that the report didn’t neglect rural areas. They acknowledged that well-functioning
AFRICAN CITIES: WELCOMING THE WORLD
cities need well-functioning urban areas. “Urban and rural investment - it’s not mutually exclusive.” Other questions were answered rather vaguely. For instance, a Nairobi representative asked: “Most of African is agrarian-based, Africa is thew breadbasket of the world, what kind of changes do predict? What kind of jobs would people be doing in the cities?” Final words? “This is the beginning of the conversation, not the end,” Diop concluded. He also added that in general, African countries know what to do when it comes to urban development. However, they are limited by poor enforcement. “We need to be able to enforce via law, and work with relevant institutions,” he said.
DOWNLOAD The World Bank’s new Africa’s Cities: Opening Doors to the World report 37
INNOVATING EGYPT’S TRANSPORT INDUSTRY Written by Wedaeli Chibelushi Produced by Connor Williams
39
EGYTRANS
We spoke to Egytrans’ CEO Abir Leheta and GM Khaled Hussein about the company’s recent developments
“
Since I started, it’s always been something I had a strong sense of belonging to,” Abir Leheta, CEO of Egyptian Transport and Commercial Services Company SAE (Egytrans) tells us. Egytrans was established in 1973 by Leheta’s father, and was a family business until it started trading on the Egyptian stock exchange in 1998. Since its inception, Egytrans has provided integrated transport and related services like freight forwarding, customs clearance and warehousing, working closely with partners who are selected for their stellar reputations, experience and quality of service, where both parties can achieve ultimate success. Abir Leheta has been working
40
April 2017
for Egytrans for 20 years. “I was originally responsible for IT in the company, then I moved into strategic planning and implementation,” she explains. After her brother, Hussam Leheta passed away in 2015, she stepped into his Chairman & CEO role. Abir tells us that her current role focuses on strategic development for the group, corporate governance and increasing Egytrans’ shareholder value. On the operational side of Egytrans is General Manager Khaled Hussein. Leheta credits Hussein as being crucial to recent company developments, and also complementing her strategic role. “I was appointed as General
S U P P LY C H A I N
Number of employees at Egytrans
350
w w w. e g y t r a n s . c o m
41
S U P P LY C H A I N
Manager in 2015, prior to which I was Chief Commercial and Operations Manager for six years,” Hussein says. Hussein is also the CEO of ETAL, one of Egytrans’ sister companies. “I’ve worked with Abir for 10 years on many projects and tasks, even before she became Chairman,” he tells us. “I find us to be the perfect team. We had a wonderful year in 2016, full of successes and achievements!” These achievements include an increase of 522.78 percent in Egytrans’ consolidated net profits, which climbed to EGP 62 million in 2016 from EGP 9.9 million the previous year. We ask Leheta how Egytrans plans to top 2016’s wild success. “We’re involved in a lot of projects, particularly power stations, which have really been booming in Egypt,” she says. Egytrans is handling the logistics and transportation for two large Siemens power projects – the Beni Suef and New Capital stations. “The power stations will be the world’s
biggest gas-fired combined-cycle power plant complexes, with total capacities of 4800 MW,” Hussein adds. Egytrans is also working with the Hitachi and Mitsubishi Alliance on its South Helwan power project. Leheta adds: “We’re also working on transporting wind farms, because it’s part of the Egyptian government’s strategy to raise the amount of renewable energy to 20 percent of the energy that’s generated. A large part of that is windfarms.” One windfarm project is with Spanish company Gamesa, Gabal El Zeit 2. It consists of 130 towers and turbines, comprising imported components, alongside locally manufactured ones. Siemens, Hitachi, Mitsubishi and Gamesa are high-profile, multinational companies. How does Egytrans build and maintain relationships with such clients? “Well, we call ourselves a customer intimate company,” Leheta explains. “We really study each customer’s requirements. We act as their consultants, always trying to find the most cost effective and time efficient
w w w. e g y t r a n s . c o m
43
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S U P P LY C H A I N
solution for whatever logistics needs they might have. We’ve had customers, for example in project logistics, who have been with us for almost 20 years. Our focus is on building these types of long-term relationships.” Hussein adds that Egytrans communicates with clients through numerous channels: email, face-to-face, phone, newsletters and customer satisfaction surveys. Egytrans’ strong reputation is also attracting clients and is a leader in the Egyptian transportation sector, and has a long history of innovation. “We have often been the first to
introduce new things, new services or new ways of doing business,” Leheta says. For example, Egytrans was the first company to introduce bonded warehousing in the country. It was also the first company to introduce LCL services. “That has always been a part of our strategy,” Leheta maintains. “We continue to explore the opportunities that we believe are not just good for the company, but are good for the industry and the economy overall.”
w w w. e g y t r a n s . c o m
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EGYTRANS
“I find us to be the perfect team. We had a wonderful year in 2016, full of successes and achievements!”
One core opportunity is corporate governance. In her role as Chairman of the Board, Leheta is heavily involved in ensuring that all stakeholders’ interests are balanced. She guides us through the Egytrans’ rich history of governance. The company first began to upgrade its corporate governance practices in 2006. Egytrans implemented a formal Code of Corporate Governance,
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April 2017
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along with other policies. In 2007, the company pushed further, asking the International Finance Corporation (IFC) to benchmark them against international standards and assist with other structural changes. After the IFC’s assessment, Egytrans added new executives, non-executives and independents to its board. “We’re one of the first companies in Egypt to appoint independent board members,” Leheta states proudly. The company is also well-known for its transparency. Egytrans significantly upgraded its public disclosures; it now discloses information such as ethics practices, ownership details
and remuneration information. “We’re always going above and beyond, not just keeping up to standard. We take our transparency and disclosure and all of our other corporate governance standards above what’s actually required,” Leheta adds. Consequently, Egytrans won the 2009 GTM/EMX Best Corporate Governance Award the 2008 EIOD Best Disclosures Citation. Not ones to rest on their laurels, Leheta and Hussein describe numerous plans for the future. “We’re exploring a lot of different opportunities,” Leheta says, “I think
w w w. e g y t r a n s . c o m
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EGYTRANS
that in Egypt there are a lot of possibilities for development”. For instance, a huge amount of Egytrans’ internal transportation happens by road. The company is optimistic about the possibilities for shifting more transportation to river and rail. Egytrans is also interested in
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developments in the Suez Canal Economic Zone; Leheta believes that it will be a very important transport hub in the future. Along with new ventures, Egytrans wants to build upon the projects that it already has. Leheta explains: “We also think there’s a lot of room for development, for providing professional services up to international standards. At the same time, we continue to invest in our sister companies. One is in specialized transport for heavy lift and exceptional dimensions’ packages and we will always continue to develop that.” Egytrans also owns an ISO tank cleaning, repair and storage company. There are plans to expand this in the future. With two ambitious leaders in Hussein and Leheta, Egytrans is likely to achieve its many expansion goals.
S U P P LY C H A I N
10 million USD Annual revenue at Egytrans
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THE TECHNOLOGY BEHIND LUXURY WRIT TEN BY WEDAELI CHIBELUSHI PRODUCED BY VINCE KIELT Y
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WE CHAT TO ROSHAN KOONJA, CIO AT CONSTANCE HOTELS AND RESORTS, ABOUT THE GROUP’S TECHNOLOGICAL STRATEGY
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hen we called Roshan Koonja, he had just touched down in Mauritius. He was back home from San Francisco after participating at IBM Connect 2017, a prestigious gathering of CIOs hosted annually by IBM. This was one of a series of recent international conferences that Roshan had been invited to as a guest speaker. Roshan feels privileged to be in these high-profile forums where he passionately shares his experiences with cutting-edge technologies that he has successfully implemented at Constance Hotels. Regular invitations to these international platforms are encouraging signs for Roshan who feels that his organization is respected in the international arena with its successes in embracing change through a
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people-first digitization model. To say that Roshan likes technology would be an understatement. Over the last 20 years, he has built an impressive track record in the information and communications technology sector in the hospitality space through the design and development of practical, innovative business solutions. Roshan has established himself as a resultsdriven no-nonsense player within his company, reaching the upper echelon of management in the process. It is no surprise that he is a well-respected and often sought after to speak at global hotel technology conferences. The information technology industry of the 90s in Mauritius was still in its infancy stages when Roshan joined Constance Hotels. While his first assignment was to implement an IT
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system for his organization, Roshan actually ended up delivering more than just a technical solution. His astute understanding of leading trends in the global hotel industry led him to be very strategic in the use of information and supporting technologies to deliver an innovative end-to-end solution that would help his company operate efficiently, effectively and competitively. Maintaining growth is central to Constance Hotels’ overall goals. Even though the company has been around for merely 46 years, it continues to gain international recognition with CNN recently naming two of its hotels (Constance Moofushi Maldives and Constance Prince Maurice Mauritius) in its list of the world’s top 25. Constance’s success is partly
2,500
NUMBER OF EMPLOYEES AT CONSTANCE HOTELS AND RESORTS
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TECHNOLOGY
due to the group finding its niche market. Based across four Indian Ocean islands, Constance Hotels prides itself on a human-scale, luxury vibe. The group comprises of seven hotels: two in Seychelles, two in Maldives, two in Mauritius and one in Madagascar. The Constance guest experience aligns with these local cultures, rather than entertaining the generic touristy practices. The hotel group also wants technology to be a large part of guest experience. That’s where Roshan comes in. Based out of Mauritius, Roshan oversees global IT operations across all four islands and leads a team of 20 people. Roshan acknowledges that technology should be treated as a strategic tool rather than just a set of tactical methods. Together with his CEO, Mr Jean-Jacques
Vallet, he advises the board on the strategic direction of where technology can be used and how technology can be an enabler. Roshan is currently looking into innovative solutions ranging from Internet of Things (IoT), Business Intelligence, Social Collaborative solution and most lately Cognitive Solutions. They are now in a new era of I.T moving from a principally back office function to more of an integrated value creation enterprise. Roshan is constantly seeking new ways of using technology to increase revenue and tap into unforeseen opportunities. While doing so, he is never veering away from the overarching ultimate goal of always improving the total guest experience. “Our motto at Constance Hotels is to convert our guests’
“I’M ALWAYS ON THE SEARCH FOR TECHNOLOGY” - R OSHAN KOONJA
CHIEF INFORMATION OFFICER
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expectations into emotional experiences. We try to enable these in the most secured way in order to safeguard our shareholders’ interests, protect guests’ data and of course our brand name.” We ask Roshan how he and his team boost guests’ experience via technology. “The diffusion of the system of information technologies in the hotel industry has increased the efficiency, quality and flexibility with which guest services are supplied. It has already led to the generation of new services and has infiltrated many areas of our group. From marketing to back office, IT is everywhere. And we have created wealth across the whole system. One simple example of how we enhanced guests’ experience is through a complete revamp of the room entertainment system. All our rooms are equipped with a Mac system which is used for enabling IPTV technology including features like Miracast, Airplay, Connection to multiple devices, charging of mobile devices, PC mode etc all connected to full HDTV. Our guests have the comfort of their home at their disposal. We lay a lot of emphasis on WIFI and as a matter of fact we have this concept of FREE WIFI Everywhere. We also have a wide variety of latest movies and music where our guest can choose from while also providing FREE access to all major newspapers and magazines across the globe through our online system. This “comfort zone” also includes the ability for guests to communicate with our team members.
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1973
THE YEAR CONSTANCE HOTELS & RESORTS WAS ESTABLISHED
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TECHNOLOGY
Through devices in their rooms, guests can use mobile messaging service WhatsApp to make any requests. It actually works as an e-concierge service “We ensure that the requests are recorded, and that we can actually service that request in the minimum amount of time, in accordance with the service level agreement implemented internally,” says Roshan. He emphasizes that communication via WhatsApp is just one “arm of the cycle”. Constance Hotels has a holistic approach where we try our best to “WOW” guests by making sure that we know our guests throughout the whole lifecycle with us so that we can make their stay as enjoyable and memorable. Roshan’s tech strategy expands beyond the hotel room, and onto the
ROSHAN KOONJA
CHIEF INFORMATION OFFICER Roshan Koonja is an innovative, resultsdriven and self-motivated senior executive, with 20 years of experience in hotel technology sector. He provides vision and leadership in the development and implementation of business focused information technology initiatives. He also translates emerging technologies into real business value, is responsible for developing and re-engineering business processes. He has strong track record in successfully developing and implementing innovative IT solutions to practical business purposes in the hospitality, banking, CRM and market intelligence sectors. He is a holder of an MBA from University of Birmingham and a Master from University of Lancaster. He actively speaks and write for Hotel Technology Conferences worldwide. He has recently been nominated for the SuperNova Awards which recognises leaders in disruptive technologies and member of the Mauritius Institute of Directors. w w w. c o n s t a n c e h o t e l s . c o m
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golf course also. Constance Hotels owns and manages two 18-hole golf courses in Mauritius and one in the Seychelles. The group pioneered the Indian Ocean golf scene – it was the first to build a championship golf course (home of the Senior European Tour) in Mauritius and also to build an 18-hole championship course in the Seychelles. Constance invests heavily in its golf facilities, and needless to say, Roshan is involved in this too. “We have to make sure that we have the right reservation system as well as an appropriate tournament system for golf,” he tells us. All our golf carts have a GPS system, so we can give the players the luxury of knowing the distance and layout of the holes as they are playing.” Roshan’s technological input extends to Constance Golf Academy, which allows guests to train with professional, qualified golf instructors. Roshan has implemented software, which enables the golfers to analyse their swing in a bid to figure out how to improve. With experiences such as golf
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training, Constance has established itself as a small luxury brand and as a matter of fact has been nominated for three consecutive years as Top Luxury brand by ReviewPro. “Although we have reached a very high position in the luxury brand echelon it is important for us to stay vigilant to ensure that Constance’s technological development does not stagnate”. Roshan strongly declares “I’m always on the search for new technologies and as a matter of fact I was recently nominated as the finalist at the SuperNova Awards by Constellation Research in San Francisco for having implemented innovative technologies across the islands. I will take any kind of new technology that can add value and create wealth across the whole system with the ultimate goal of enhancing the guest experience”. Identifying technology that fits Constance hotels is just one part of Roshan’s job. He has to make sure that his team is well versed in any new type of technology that he brings along. “Being in an insular environment, it is very hard to find the
“THE TEAM IS GROWING FAST, AND I THINK WE’RE GEARED UP WITH THE RIGHT INFRASTRUCTURE, THE RIGHT PEOPLE AND RESOURCES TO BE ABLE TO REACH YET ANOTHER HALLMARK”
JMG is the distribution arm of TheBrandHouse and is one of the most respected organisations in Mauritius in the field of home appliances and consumer electronics. JMG acts as the essential link between the brand owners and the market. JMG imports, markets and distributes top international brands such as Samsung, Panasonic, Beko, Zanussi, Black and Decker, Elba, Alcatel, JBL, Galanz, ASUS and Chigo. For your corporate needs JMG has a dedicated team of professionals, offering tailor-made services, quick and easy delivery, facility of payment – all with guaranteed satisfaction. For your corporate needs please contact: Vincent Mayer Sales Manager 54 98 19 89 vincent.mayer@thebrandhouse.mu
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Stephane Veeramalay Sales Executive 54 97 79 76 stephane.verramalay@thebrandhouse.mu
Anabelle Macedonien Sales Assistant 54 23 01 16 anabelle.macedonien@thebrandhouse.mu
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right competencies in the local market. Very often competencies have to be outsourced from abroad. However, all my projects are accompanied by a transfer of technology and know-how to the local resources. This makes sure that they grow and at the same time providing the best of services to the guests and staffs. I also make sure that the staffs are certified on the latest technologies.” Roshan gives us an example: When we had Apple Mac Minis installed in the rooms, we partnered with Apple, trained our people on the platform of Apple and did a transfer of knowledge. Roshan also tells us what he looks for when hiring people. “For me, what is most important when I hire for the team, is that the person has a good team spirit. Attitude is very important.” he explains. If someone
has the right mind-set and willingness to grow within the existing team, they will draw his attention. Of course, technical expertise is important to him, but “it’s not critical”. Roshan is confident that his recruitment and wider technological strategies have been successful. “I’ve gained respect from my team members and the board. The team is growing fast, and I think we’re geared up with the right infrastructure, the right people and resources to be able to reach yet another hallmark.” Gourmet food and customer service are still the fundamental pillars of the hotel industry, but technology can make it easier to consistently deliver a memorable experience to the guests. And Constance Hotels understands that critical tenet.
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The financial inclusion solution Written by Wedaeli Chibelushi Produced by Vince Kielty
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We spoke to Oliver Krantz, Microcred CIO, about recent developments in the firm’s IT infrastructure
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he best person to mine for information on Microcred’s IT transformation is Oliver Krantz. For the past 20 months, Krantz is the CIO at Microcred, a microfinance company with numerous financial institutions in Africa and China. “I’m passionate about how technology is helping people in Africa get access to financial services. While financial inclusion in Africa has made a great progress in the past few years, the majority of the people in Africa are still unbanked
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and don’t have access to basic financial services. Our mission at Microcred is to simplify their lives and improve their living conditions through our products and services”. While digital innovation often focuses on the client’s experience, at Microcred, it’s also in-house. “We’re developing tools which include tighter device management on desktops and mobile devices, to strengthen our internal security and compliance”, says Krantz.
The company has over 3,000 employees worldwide, and almost the same number of devices. “Having control of things like license management is always a challenge in Africa” he says. “Being able to see what device hardware you have, what software is installed on them, if the Windows and anti-virus updates are current etc., was a good thing to start to get.” Krantz’s team also manage access rights across the board and remotely deploy
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MICROCRED
“When people say they think cash is going to go away, I think that’s a pipe dream. It’s about converting cash into electronics, transferring it somewhere then converting it back into cash again” – Oliver Krantz, CIO
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software onto all of its devices. In 2015, Microcred launched Baobab, its new brand of digital banking for the mass market in Arica. Recently, Baobab has deployed a mobile app that its agents can use to sign new up clients for an account. To improve the efficiency of loan applications, Microcred also launched a mobile app for its loan officers to collect client data, including their geo-location, and submit a client loan application directly from the client’s business or home. “Our initial Baobab agent network was PC-based. We’re now rolling out tablet solutions, so
TECHNOLOGY
our agents can go out to the streets with a tablet and biometric reader and sign up new customers, doing all the KYC (Know Your Customers) there and then” Krantz explains. For Microcred, increased mobility isn’t synonymous with an increased amount of digital payments. “Africa is still very much a cash society,” Krantz stresses, ״so when I hear statements like ‘cash is on its way to disappear’, I think that’s a pipe dream. It’s about converting cash into digital to put it in a safe and secure place or moving it across long distances and converting it back into cash again when needed”.
Baobab by Microcred is
the realization of Microcred evolution towards digital banking for the mass market. The service is SMS-based: the customer gets confirmation for every transaction via SMS, along with special benefits and personalized offers. It is operated by an agents’ network alongside Microcred branches. Today, there are more than 800 Baobab service points in Madagascar and Senegal, where people can carry out numerous financial transactions. Baobab was named the “Best African Retail Banking Company” in 2016.
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Saying that, Microcred is rolling out products that will enable people to make electronic transfers. “It’s an integral part of our business, as taking a loan and collecting repayments through this account, but it also allows people to be able use this account to pay bills or receive a money transfer. We use technology to give people the support they need, when they want it,” Krantz says. When asked why he enjoys working at Microcred, Krantz barely hesitates. “We are a company that focuses on its customers as individuals with unique and different needs, instead of just source-of-revenue customers. This is what differentiates us” he says. “From a technology standpoint, we’re pushing towards first-world standards in everything we do.” With so many current IT projects and several more for the future, Microcred will surely meet these standards very soon.
500
Million MIRCOCRED annual revenue in USD
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THE GHANA CHAMBER OF MINES Article supplied by CoM
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Ghana’s mining industry A foreword by The Ghana Chamber of Mines
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he Ghana Chamber of Mines has, since its establishment in 1928, been a private sector employers’ association representing companies and organizations engaged in the minerals and mining industry in Ghana. Programmes and activities of the Chamber are funded entirely by its Member Companies, which are largely responsible for producing over sixty per cent of Ghana’s gold output. Ghana has a long history of mining, especially for gold. The country’s geological space abounds with
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diverse precious minerals. A recent airborne geological survey confirmed the occurrence of over 28 minerals, including, platinum, uranium, tantalite and rare earth. However, the country’s mining industry is synonymous to the gold industry on account of the preeminent weight of gold in the basket of commercially exploited minerals. Gold accounts for 97.4 percent of gross mineral revenue while the respective share of manganese and diamond are 0.3 percent and 2.3 percent. The main methods of mining in the country are deep-shaft and surface mining. Also, alluvial mining is popular in the Artisanal and Small-Scale sector.
The GFMS Gold Survey (2016) reports that total gold output in Ghana shrank by nearly 12 percent to 95 tonnes in 2015, relative to 107 tonnes in 2014. Ghana’s poor gold output performance is partly explained by the suspension of mining by AngloGold Ashanti Obuasi, persistent curtailment in supply of electricity and a general rise in the cost of doing business. These notwithstanding, the Chief Executive Officer of the Chamber, Sulemanu Koney, intimated that the past year has been relatively better. “The mining industry continues to be the bastion of value to support the developmental objectives of Ghana despite the challenges. Some of the challenges have been resolved the sector is benefitting from the conducive business environment.” Statistics from the Ghana Revenue Authority (GRA) indicates that the minerals and mining sector continues to be a leading source of fiscal revenue for the country. Its contribution to the national kitty in 2015 was GHȻ 1.35 billion. This represents an eight percent increment over the GHȻ 1.24 billion recorded in 2014. The
sector’s fiscal payments comprised GHȻ 463.12 million in corporate taxes, GHȻ 485.6 million in royalties, GHȻ 404.74 million in PAYE and GHȻ 0.87 million in other taxes. The Chamber continues to play an integral and prominent role in the lead up to the formation of the ECOWAS Federation of Chamber of Mines, especially, in the drafting of its constitution. Following the successful adoption of the constitution by member states in 2015, the Federation
“The mining industry continues to be the bastion of value to support the developmental objectives of Ghana despite the challenges” - Chief Executive Officer, Sulemanu Koney
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of ECOWAS Chambers of Mines was launched in November 2016. Koney said: “This is a milestone in the history of mining in the sub-region and provides our countries with the platform to promote greater investment in the sector and to affect mining policy and legislation on the continent. It shows how essential mining is to the ECOWAS economy and working together is the most prudent way of ensuring that the sub-region becomes the hub for mining on the continent.�
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The mining industry remains one of the most regulated sectors and member companies continue to adhere to both domestic and international codes, laws, standards and regulations towards the achievement of a sound and safe environment. The commitment of member companies to the protection of the environment cannot be overemphasised. Through the strong partnership with the Environmental Protection Agency (EPA), the Chamber ensures that the mining industry’s environmental compliance is observed holistically. The passage of the Minerals and Mining
Amendment Law 2014 Act (900) is a critical landmark in the promotion and regulation of mining activities in Ghana. The new law, which is an amendment to the Minerals and Mining Act 2006 (ACT 703), is meant to ensure that state institutions prosecute illegal miners and incapacitate them by confiscating the heavy machinery used to destroy the environment. Moreover, the new Minerals and Mining Policy launched in 2016 is expected to shape the governance structure of minerals exploitation in the country. On Corporate Social Responsibility (CSR) and Sustainable Alternative Livelihood Programmes, the Chamber’s initiatives are designed to promote
and support the training of community members and provide technical and other forms of assistance to host mines. This is meant to promote sustainable mining operations across the country as well as provide support for education, research and other projects which are beneficial to the host Communities and the Republic of Ghana. “Through these projects, the Chamber continues to assist communities to improve quality of life by equipping inhabitants with requisite skills and knowledge to manage their own affairs,� Koney added.
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Written by Dale Benton Produced by Richard Deane
Growth of
mining in Ghana 79
Through its two gold mining operations, Newmont Mining Corporation is the major player in Ghana’s gold mining sector. With plans to expand beyond the boundaries of Ghana, Newmont is doing everything it can to leave a lasting legacy of creating value and improving lives
A
s one of the world’s leading gold producers, Newmont Mining Corporation’s portfolio stretches from the Americas to Africa and Australia, creating value and improving lives for its shareholders and local communities. The company is focused on achieving excellence across the five pillars that underpin its strategy, including, Health and Safety, Operational Excellence, Growth, People, and Sustainability and External Relations. It is through focused efforts in these areas that Newmont’s operations in Ghana has achieved success. Newmont established its presence in Ghana in 2002 through the acquisition of Normandy Mining of Australia along with Franco-Nevada of Canada. This merger gave Newmont complete ownership of two mining projects in Ghana, Ahafo in the Brong Ahafo region and Akyem, located
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in the Birim North District. Both of Newmont’s mines are in commercial operation, with Ahafo producing around five million ounces of gold since production began in 2006 and Akyem producing approximately 1.5 million ounces since late 2013. With a mature gold mine in Ahafo and a much younger mine in Akyem, Newmont ranks as Ghana’s largest gold producer, responsible for 29 percent of the country’s annual gold production as at 2015. With such a strong footprint in Ghana, what’s next for the company’s operations in Africa? “We have an ambition to expand beyond the boundaries of Ghana,” says Alwyn Pretorius, Regional Senior Vice President of Newmont’s Africa operations. “We’re looking at business development opportunities in Cote d’lvoire as well as greenfield exploration in Ethiopia. Right now, there hasn’t
MINING
Alwyn Pretorius Regional Senior VP of Africa Operations
As Regional Senior Vice President of Newmont Africa, Alwyn has oversight responsibility of Newmont Mining Corporation’s Africa operations, Newmont Ghana Gold Limited (Ahafo Mine) and Newmont Golden Ridge Limited (Akyem Mine), and exploration on the continent.
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BESPOKE SOLUTIONS, MEASUREABLE SUCCESS Vivo Energy’s technical knowledge of mining and associated services means that we can actively deliver tailored solutions to our customers, not only through Shell’s high-quality products, but also through a range of unique value-adding services. For over a decade Vivo Energy Ghana has been working in close partnership with Newmont Ghana Gold Limited to provide high quality products and in-depth technical
assistance relating to fuels and lubricants to deliver long-term reductions in fuel and maintenance costs. We are here to help our mining customers meet each and every new challenge with bespoke, fit-for-purpose solutions that add real and sustainable value to their businesses. For more information please visit www.vivoenergy.com
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MINING
been any drilling but we have completed early activities in preparation for exploration in Ethiopia,” he says. THE POWER OF PEOPLE Pretorius has been with Newmont since April 2016 having worked his way up through various leadership roles with Anglo American, African Rainbow Minerals and Harmony Gold. In his current role as Regional Senior Vice President, he can call back on his experience at all levels of a mining operation, from miner to chief operator to managerial. He believes this gives him a better understanding of the day-to-day work at a mine. “The most important thing is to understand what the work is about and to understand what the day in the life of a miner or operator really entails,” he says.
Number of employees at Newmont Ghana
2,000
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“That’s important for managers but also for executives because when you jump in at a very high level, you can lose touch with the realities of doing the mining and the work yourself. I have a good appreciation of the work, and for me it’s so important to stay connected to our most valuable resource – our people.” That notion of people being the most valuable resource extends beyond simply the employees working at Newmont in Ghana to the people who live within the communities in which the company operates. Newmont employs around 2,000 employees and approximately 3,000 business partners across its Ghanaian operations, but the impressive statistic shows that close to 41 percent of the entire workforce comes from what Alwyn describes as “local-local.” FOUNDATION OF RESPONSIBILITY As a mining operation, the importance of creating sustainable value for host communities is often the most important aspect a mining company has to get
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‘A mining operation can play a huge part in the socioeconomic development of communities, and for Newmont in Ghana it’s no different’
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right. For Pretorius and Newmont, that value is evidenced by a number of programmes and initiatives designed to empower and benefit members of the local community. “Communities are important stakeholders in our business. It is important to leave a community in a better state when we leave than when we arrived,” he says. Newmont offers a four-year apprentice programme and a shortterm ‘learnership’ programme, designed to train local communities and provide them with employable technical skills within a mining operation. Pretorius admits that not all of the apprentices will find work within Newmont, but they will be better equipped with new skills to find work in either the mining industry or beyond. A mining operation can play a huge part in the socio-economic development of communities, and for Newmont in Ghana it’s no different. “For us, Corporate Social Responsibility is core to the way we operate our business. It aligns with our purpose at Newmont to create value and improve lives through sustainable and responsible mining,” he says.
Newmont has established two development foundations, the Newmont Ahafo Development Foundation (NADeF) based in Ahafo and Newmont Akyem Development Foundation (NAkDeF) in Akyem. These Foundations are designed to support the development of local communities in a number of areas, including human resource development, economic empowerment, the provision of social amenities and infrastructure, and the safe and responsible protection of natural resources. These Foundations utilise funds from both the Ahafo and Akyem mine, where Newmont contributes $1 per ounce of gold produced from both mines along with 1 percent of net profit. For Pretorius, the Foundations are fundamental to sustaining the stakeholder relationships Newmont has with local communities. “They are mainly community driven and community owned. All activities of the Foundations are managed by a Board of Trustees” he says. “We assist and provide information and support to ensure the development of a sustainable economic model for the future of the community long
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beyond the closure of our mines in the future.” A HEALTHY OPERATION The health and safety of a mining operation is key to the success and future growth of any mining business. Mining organisations around the world strive to ensure that the working environment is as safe as possible and invest heavily in initiatives and programmes to reduce injuries. For Newmont, safety represents a core value. “We have made incredible progress in the health and safety of our mines over the last seven years,” he says. “But of course, there is always room to improve and over the next five years we will be investing further to achieve a culture of zero harm.” Technology has been and will continue to be key in delivering on the promise of remaining a leader in the health and safety space. Newmont has a number of continuous improvement initiatives to train and develop its employees to make better use of technologies to eliminate or significantly reduce hazards and risks in the workplace. AWARD WINNING As a testament to this commitment to being not only a responsible corporate citizen but a safe operator, Newmont’s operations in Ghana have been recognised by a number of independent organisations such as the Country’s Investment Promotion Council as well as the Ghana Chamber of Mines.
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2003 The year that Newmont Ghana was founded
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“It means that we are definitely doing something right, we are delivering the results that we are expected to deliver and being recognised not only by regulators but by our peers as well,” he says. Receiving acclaim for the here and now is one thing, but Pretorius is already thinking of the future for Newmont, within Ghana and beyond. “We are already looking at an underground mining project and a mill expansion that will increase
the capacity of our processing plant at Ahafo by 50 percent. The underground project is important to us because it will open up the enormous underground potential that we know exists in the Africa region,” he says. “But really, our aim is to build on the solid reputation that we have developed and further improve it with regard to our sustainability efforts and external relationships.”
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